Help us serve you better. Take a survey now

Take survey
Skip to content
Edit post

Reuters: European Central Bank pushing Raiffeisen to exit Russian market

by The Kyiv Independent news desk March 24, 2023 12:04 PM 1 min read
The logo of Raiffeisen Bank International (RBI) is pictured above the entrance of the bank's headquarters building on Feb. 1, 2023 in Vienna, Austria. (Photo by Heinz-Peter Bader/Getty Images)
This audio is created with AI assistance

Support independent journalism in Ukraine. Join us in this fight.

Become a member Support us just once

The European Central Bank is pushing Austrian bank Raiffeisen to exit the Russian market, Reuters reported on March 24.

Raiffeisen is reportedly being urged by the European Central Bank to devise an exit strategy for winding down its operations in Russia, according to five anonymous sources cited by Reuters. This exit strategycan entail the disposal or shutdown of Raiffeisen's Russian branch of operations.

A Raiffeisen spokesperson told Reuters that the bank was "expediting" its assessment of future business prospects in Russia. Additionally, some Austrian officials see the European Central Bank's push as "unwarranted foreign meddling," Reuters said.

On Feb. 18, Reuters reported that the U.S. Office of Foreign Assets Control (OFAC) was investigating Raiffeisen for its activities in Russia.

Representatives from the bank confirmed to Reuters that the OFAC had contacted it in January 2023 to seek clarification on its payments business and related processes, in light of the ongoing war in Ukraine.

The OFAC requested a reply by February 2023 but the bank's lawyers have negotiated a push back, with information tranches to be sent in early April, May, and June.

The bank said in its statement to Reuters that it is cooperating fully with the OFAC.

As Austria's second-largest bank lender, Raiffeisen plays a significant role in Russia's financial system, and is one of only two foreign banks classified as "systemically important" by the Russian central bank.

This underscores the bank's importance to the Russian economy, particularly in the face of extensive Western sanctions. Despite the full-scale invasion of Ukraine in February 2022, Raiffeisen has continued to operate in Russia.

In 2022, the bank generated a net profit of 3.8 billion euros, with 2 billion euros of that coming from Russia alone. Russians have entrusted more than 20 billion euros to the bank.

Support independent journalism in Ukraine. Join us in this fight.
Freedom can be costly. Both Ukraine and its journalists are paying a high price for their independence. Support independent journalism in its darkest hour. Support us for as little as $1, and it only takes a minute.
visa masterCard americanExpress

News Feed

Ukraine Daily
News from Ukraine in your inbox
Ukraine news
Please, enter correct email address
9:59 AM

Lukashenko, Putin hold 4-hour meeting in Moscow.

Belarusian dictator Alexander Lukashenko and his Russian counterpart Vladimir Putin held a nearly four-hour meeting until late on April 11, according to Russian state-controlled news agency RIA Novosti.
4:34 AM

Ukrainian Railways initiates construction of major European routes.

In an effort to facilitate integration with the European Union, Ukrainian Railways (Ukrzaliznytsia) has initiated the construction of a European-gauge railway, stretching from the Ukrainian border town of Chop in Zakarpattia Oblast to its administrative center, Uzhhorod.
MORE NEWS

Editors' Picks

Enter your email to subscribe
Please, enter correct email address
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required
Successfuly subscribed
Thank you for signing up for this newsletter. We’ve sent you a confirmation email.